But the bigger question remains—why would Apple sell a device on such a thin margin? I think the answer is two-fold. First, a $49 Apple TV would be an incredible, no-brainer accessory to devices running iOS 5. And though margins would be thin on the device itself I think it would help drive sales of iOS devices and propagate iOS platform lock-in. Second, I think the low price would give Apple momentum in the living room.
I don’t know if Apple would ever do it, but it sounds incredibly compelling to me. At $49, I’d have an Apple TV connected to every television in the house. And, I bet that’s the case for every other Mac geek in the world.
I can’t imagine more Apple TVs on the market not translating into more profit for Apple, even if those Apple TVs are sold for $49 each with significantly lower margins.
(Via The Loop.)